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Facebook expects to pay a fine of up to $5 billion in a settlement with federal regulators. The tech giant disclosed that figure in its first-quarter 2019 financial results. Facebook has been in negotiations with the Federal Trade Commission following concerns that the company violated a 2011 consent decree. Back then, company leaders promised to give consumers "clear and prominent notice" when sharing their data with others and to get "express consent."

But, experts say, Facebook broke its promise. Just one example: giving user data to Cambridge Analytica, the political consulting firm that did work for the 2016 Trump campaign. Facebook estimates the fine will be in the $3 billion to $5 billion range and has set aside $3 billion for payment. "The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome," the company's statement says.

Lawmakers in the United States and the United Kingdom are calling on Facebook chief executive Mark Zuckerberg to explain how the names, preferences and other information from tens of millions of users ended up in the hands of the Cambridge Analytica data analysis firm.

After Facebook cited data privacy policies violations and announced that it was suspending the Cambridge Analytica data analytics firm also tied to the Trump campaign, new revelations have emerged. On Saturday, reports revealed that Cambridge Analytica, used a feature once available to Facebook app developers to collect information on some 270,000 people. In the process, the company, which was, at the time, handling U.S. President Donald Trump’s presidential campaign, gained access to data on tens of millions of their Facebook “friends” and that it wasn’t clear at all if any of these people had given explicit permission for this kind of sharing. Facebook’s Deputy General Counsel Paul Grewal said in a statement, “We will take legal action if necessary to hold them responsible and accountable for any unlawful behavior.”

The social media giant also added that it was continuing to investigate the claims. According to reports, Cambridge Analytica worked for the failed presidential campaign of U.S. Senator Ted Cruz and then for the presidential campaign of Donald Trump. Federal Election Commission records reportedly show that Trump’s campaign hired Cambridge Analytica in June 2016 and paid it more than $6.2 million. On its website, the company says that it “provided the Donald J. Trump for President campaign with the expertise and insights that helped win the White House.” Cambridge Analytica also mentions that it uses “behavioral microtargeting,” or combining analysis of people’s personalities with demographics, to predict and influence mass behavior.  According to the company, it has data on 220 million Americans, two thirds of the U.S. population. Cambridge Analytica says it has worked on other campaigns in the United States and other countries, and it is funded by Robert Mercer, a prominent supporter of politically conservative groups.

For more than a year we’ve been investigating Cambridge Analytica and its links to the Brexit Leave campaign in the UK and Team Trump in the US presidential election. Now, 28-year-old Christopher Wylie goes on the record to discuss his role in hijacking the profiles of millions of Facebook users in order to target the US electorate

The battle over the Federal Communications Commission’s (FCC) repeal of net neutrality rules is entering a new phase, with opponents of the move launching efforts to preserve the Obama-era consumer protections.The net neutrality rules had required internet service providers to treat all web traffic equally. Republicans on the commission decried the regulatory structure as a gross overreach, and quickly moved to reverse them once the Trump administration came to power. The reversal of the rules was published in the Federal Register Thursday, and even though the order is months away from implementation, net neutrality supporters are now free to mount legal challenges to the action. A coalition of Democratic state attorneys general, public interest groups and internet companies have vowed to fight in the courts. Twenty-three states, led by New York and its attorney general, Eric Schneiderman (D), have already filed a lawsuit. 

The emerging court battle over net neutrality could keep the issue in limbo for years.Meanwhile, a separate battle over the rules is brewing in Congress.Senate Democrats have secured enough support to force a vote on a bill that would undo the FCC’s December vote and leave the net neutrality rules in place. The bill, which is being pushed by Sen. Ed MarkeyEdward (Ed) John MarkeyRegulators seek to remove barriers to electric grid storage Markey, Paul want to know if new rules are helping opioid treatment Oil spill tax on oil companies reinstated as part of budget deal MORE (D-Mass.), would use a legislative tool called the Congressional Review Act (CRA) to roll back the FCC’s repeal of net neutrality. The entry of the FCC’s repeal order in the Federal Register Thursday means that the Senate has 60 legislative days to move on the CRA bill. Democrats have secured support from one Republican, Sen. Susan CollinsSusan Margaret CollinsOvernight Tech: Judge blocks AT&T request for DOJ communications | Facebook VP apologizes for tweets about Mueller probe | Tech wants Treasury to fight EU tax proposal Overnight Regulation: Trump to take steps to ban bump stocks | Trump eases rules on insurance sold outside of ObamaCare | FCC to officially rescind net neutrality Thursday | Obama EPA chief: Reg rollback won't stand FCC to officially rescind net neutrality rules on Thursday MORE (Maine), and need just one more to cross the aisle for the bill to pass the chamber. 

Even if Democrats do manage to find the tie-breaking vote in the Senate, the bill is almost certain to die in the House. But Democrats see a roll call vote as an opportunity to make GOP members stake out a position on an issue that they think could resonate in the midterm elections. On yet another front, Democratic states around the country have already launched their own attack on the FCC’s rules. Five governors (from Montana, Hawaii, New Jersey, Vermont and New York) have in recent weeks signed executive orders forbidding their states from doing business with internet service providers who violate net neutrality principles. And, according to the pro-net neutrality group Free Press, legislatures in 26 states are weighing bills that would codify their own open internet protections. The local efforts could ignite a separate legal battle over whether states have the authority to counteract the FCC’s order, which included a provision preempting them from replacing the rules.

“We are truly fucked.” That was Motherboard’s spot-on reaction to deep fake sex videos (realistic-looking videos that swap a person’s face into sex scenes actually involving other people). And that sleazy application is just the tip of the iceberg. As Julian Sanchez tweeted, “The prospect of any Internet rando being able to swap anyone’s face into porn is incredibly creepy. But my first thought is that we have not even scratched the surface of how bad ‘fake news’ is going to get.” Indeed. Recent events amply demonstrate that false claims—even preposterous ones—can be peddled with unprecedented success today thanks to a combination of social media ubiquity and virality, cognitive biases, filter bubbles, and group polarization. The resulting harms are significant for individuals, businesses, and democracy. Belated recognition of the problem has spurred a variety of efforts to address this most recent illustration of truth decay, and at first blush there seems to be reason for optimism. Alas, the problem may soon take a significant turn for the worse thanks to deep fakes. Get used to hearing that phrase. It refers to digital manipulation of sound, images, or video to impersonate someone or make it appear that a person did something—and to do so in a manner that is increasingly realistic, to the point that the unaided observer cannot detect the fake. Think of it as a destructive variation of the Turing test: imitation designed to mislead and deceive rather than to emulate and iterate.

Fueled by artificial intelligence, digital impersonation is on the rise. Machine-learning algorithms (often neural networks) combined with facial-mapping software enable the cheap and easy fabrication of content that hijacks one’s identity—voice, face, body. Deep fake technology inserts individuals’ faces into videos without their permission. The result is “believable videos of people doing and saying things they never did.” Not surprisingly, this concept has been quickly leveraged to sleazy ends. The latest craze is fake sex videos featuring celebrities like Gal Gadot and Emma Watson. Although the sex scenes look realistic, they are not consensual cyber porn. Conscripting individuals (more often women) into fake porn undermines their agency, reduces them to sexual objects, engenders feeling of embarrassment and shame, and inflicts reputational harm that can devastate careers (especially for everyday people). Regrettably, cyber stalkers are sure to use fake sex videos to torment victims. What comes next? We can expect to see deep fakes used in other abusive, individually-targeted ways, such as undermining a rival’s relationship with fake evidence of an affair or an enemy’s career with fake evidence of a racist comment.

Theresa May is planning to introduce huge regulations on the way the internet works, allowing the government to decide what is said online. Particular focus has been drawn to the end of the manifesto, which makes clear that the Tories want to introduce huge changes to the way the internet works. "Some people say that it is not for government to regulate when it comes to technology and the internet," it states. "We disagree." Senior Tories confirmed to BuzzFeed News that the phrasing indicates that the government intends to introduce huge restrictions on what people can post, share and publish online. The plans will allow Britain to become "the global leader in the regulation of the use of personal data and the internet", the manifesto claims. It comes just soon after the Investigatory Powers Act came into law. That legislation allowed the government to force internet companies to keep records on their customers' browsing histories, as well as giving ministers the power to break apps like WhatsApp so that messages can be read. The manifesto makes reference to those increased powers, saying that the government will work even harder to ensure there is no "safe space for terrorists to be able to communicate online". That is apparently a reference in part to its work to encourage technology companies to build backdoors into their encrypted messaging services – which gives the government the ability to read terrorists' messages, but also weakens the security of everyone else's messages, technology companies have warned.

The government now appears to be launching a similarly radical change in the way that social networks and internet companies work. While much of the internet is currently controlled by private businesses like Google and Facebook, Theresa May intends to allow government to decide what is and isn't published, the manifesto suggests. The new rules would include laws that make it harder than ever to access pornographic and other websites. The government will be able to place restrictions on seeing adult content and any exceptions would have to be justified to ministers, the manifesto suggests. The manifesto even suggests that the government might stop search engines like Google from directing people to pornographic websites. "We will put a responsibility on industry not to direct users – even unintentionally – to hate speech, pornography, or other sources of harm," the Conservatives write.

The laws would also force technology companies to delete anything that a person posted when they were under 18. But perhaps most unusually they would be forced to help controversial government schemes like its Prevent strategy, by promoting counter-extremist narratives. "In harnessing the digital revolution, we must take steps to protect the vulnerable and give people confidence to use the internet without fear of abuse, criminality or exposure to horrific content", the manifesto claims in a section called 'the safest place to be online'. The plans are in keeping with the Tories' commitment that the online world must be regulated as strongly as the offline one, and that the same rules should apply in both. "Our starting point is that online rules should reflect those that govern our lives offline," the Conservatives' manifesto says, explaining this justification for a new level of regulation. "It should be as unacceptable to bully online as it is in the playground, as difficult to groom a young child on the internet as it is in a community, as hard for children to access violent and degrading pornography online as it is in the high street, and as difficult to commit a crime digitally as it is physically."

On Sunday’s Face the Nation, Sen. Rand Paul was asked about President Trump’s accusation that President Obama ordered the NSA to wiretap his calls. The Kentucky senator expressed skepticism about the mechanics of Trump’s specific charge, saying: “I doubt that Trump was a target directly of any kind of eavesdropping.” But he then made a broader and more crucial point about how the U.S. government spies on Americans’ communications — a point that is deliberately obscured and concealed by U.S. government defenders. Paul explained how the NSA routinely and deliberately spies on Americans’ communications — listens to their calls and reads their emails — without a judicial warrant of any kind: The way it works is, the FISA court, through Section 702, wiretaps foreigners and then [NSA] listens to Americans. It is a backdoor search of Americans. And because they have so much data, they can tap — type Donald Trump into their vast resources of people they are tapping overseas, and they get all of his phone calls. And so they did this to President Obama. They — 1,227 times eavesdrops on President Obama’s phone calls. Then they mask him. But here is the problem. And General Hayden said this the other day. He said even low-level employees can unmask the caller. That is probably what happened to Flynn. They are not targeting Americans. They are targeting foreigners. But they are doing it purposefully to get to Americans.

Paul’s explanation is absolutely correct. That the NSA is empowered to spy on Americans’ communications without a warrant — in direct contravention of the core Fourth Amendment guarantee that “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause” — is the dirty little secret of the U.S. Surveillance State. As I documented at the height of the controversy over the Snowden reporting, top government officials — including President Obama — constantly deceived (and still deceive) the public by falsely telling them that their communications cannot be monitored without a warrant. Responding to the furor created over the first set of Snowden reports about domestic spying, Obama sought to reassure Americans by telling Charlie Rose: “What I can say unequivocally is that if you are a U.S. person, the NSA cannot listen to your telephone calls … by law and by rule, and unless they … go to a court, and obtain a warrant, and seek probable cause.” The right-wing chairman of the House Intelligence Committee at the time, GOP Rep. Mike Rogers, echoed Obama, telling CNN the NSA “is not listening to Americans’ phone calls. If it did, it is illegal. It is breaking the law.” Those statements are categorically false. A key purpose of the new 2008 FISA law — which then-Senator Obama voted for during the 2008 general election after breaking his primary-race promise to filibuster it — was to legalize the once-controversial Bush/Cheney warrantless eavesdropping program, which the New York Times won a Pulitzer Prize for exposing in 2005. The crux of the Bush/Cheney controversy was that they ordered NSA to listen to Americans’ international telephone calls without warrants — which was illegal at the time — and the 2008 law purported to make that type of domestic warrantless spying legal.

India is the world’s largest democracy and is home to 13.5 percent of the world’s internet users. So the Indian Supreme Court’s August ruling that privacy is a fundamental, constitutional right for all of the country’s 1.32 billion citizens was momentous. But now, close to three months later, it’s still unclear exactly how the decision will be implemented. Will it change everything for internet users? Or will the status quo remain? The most immediate consequence of the ruling is that tech companies such as Facebook, Twitter, Google, and Alibaba will be required to rein in their collection, utilization, and sharing of Indian user data. But the changes could go well beyond technology. If implemented properly, the decision could affect national politics, business, free speech, and society. It could encourage the country to continue to make large strides toward increased corporate and governmental transparency, stronger consumer confidence, and the establishment and growth of the Indian “individual” as opposed to the Indian collective identity. But that’s a pretty big if. Advertisement The privacy debate in India was in many ways sparked by a controversy that has shaken up the landscape of national politics for several months. It began in 2016 as a debate around a social security program that requires participating citizens to obtain biometric, or Aadhaar, cards. Each card has a unique 12-digit number and records an individual’s fingerprints and irises in order to confirm his or her identity. The program was devised to increase the ease with which citizens could receive social benefits and avoid instances of fraud. Over time, Aadhaar cards have become mandatory for integral tasks such as opening bank accounts, buying and selling property, and filing tax returns, much to the chagrin of citizens who are uncomfortable about handing over their personal data. Before the ruling, India had weak privacy protections in place, enabling unchecked data collection on citizens by private companies and the government. Over the past year, a number of large-scale data leaks and breaches that have impacted major Indian corporations, as well as the Aadhaar program itself, have prompted users to start asking questions about the security and uses of their personal data.

n order to bolster the ruling the government will also be introducing a set of data protection laws that are to be developed by a committee led by retired Supreme Court judge B.N. Srikrishna. The committee will study the data protection landscape, develop a draft Data Protection Bill, and identify how, and whether, the Aadhaar Act should be amended based on the privacy ruling.

Should the data protection laws be implemented in an enforceable manner, the ruling will significantly impact the business landscape in India. Since the election of Prime Minister Narendra Modi in May 2014, the government has made fostering and expanding the technology and startup sector a top priority. The startup scene has grown, giving rise to several promising e-commerce companies, but in 2014, only 12 percent of India’s internet users were online consumers. If the new data protection laws are truly impactful, companies will have to accept responsibility for collecting, utilizing, and protecting user data safely and fairly. Users would also have a stronger form of redress when their newly recognized rights are violated, which could transform how they engage with technology. This has the potential to not only increase consumer confidence but revitalize the Indian business sector, as it makes it more amenable and friendly to outside investors, users, and collaborators.

Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.Perhaps the most important recognition at the outset is that the secretive deals that have been reported, whether those with a handful of device manufacturers or with 150 large technology companies, are just the tip of the iceberg. Those secretive deals handing over user data in exchange for gobs of cash were merely part and parcel of a much broader illegal scheme that begins with Facebook’s transition to mobile in 2012 and continues to this very day. We believe this illegal scheme amounts to a clear RICO violation. The United Kingdom Parliament agrees. Here’s how criminal investigators can overcome Facebook’s incredibly effective concealment campaign and bring a viable RICO case.Facebook’s pattern of racketeering activity is a play in three acts from at least 2012 to present. The first act is all about the desperation resulting from the collapse of Facebook’s desktop advertising business right around its IPO and the various securities violations that resulted. The second act is about covering up those securities violations by illegally building its mobile advertising business via extortion and wire fraud in order to close the gap in Facebook’s revenue projections before the world took notice, which likely resulted in additional securities violations. The third act is about covering up the extortion and wire fraud by lying to government officials investigating Facebook while continuing to effectuate the scheme. We are still in the third act.For almost a decade now Facebook has been covering up one illegal act with another in order to hide how it managed to ramp up its mobile advertising business faster than any other business in the history of capitalism. The abuses of Facebook’s data, from Russian interference in the 2016 election to Cambridge Analytica and Brexit, all stem in substantial part from the decisions Facebook knowingly, willfully and maliciously made to facilitate this criminal conspiracy. Put simply, Facebook’s transition to mobile destabilized the world.

After NBC News on Wednesday published a trove of leaked documents that show how Facebook "treated user data as a bargaining chip with external app developers," White House hopeful Sen. Bernie Sanders declared that it is time "to break Facebook up."

When British investigative journalist Duncan Campbell first shared the trove of documents with a handful of media outlets including NBC News in April, journalists Olivia Solon and Cyrus Farivar reported that "Facebook CEO Mark Zuckerberg oversaw plans to consolidate the social network's power and control competitors by treating its users' data as a bargaining chip, while publicly proclaiming to be protecting that data." With the publication Wednesday of nearly 7,000 pages of records—which include internal Facebook emails, web chats, notes, presentations, and spreadsheets—journalists and the public can now have a closer look at exactly how the company was using the vast amount of data it collects when it came to bargaining with third parties.

According to Solon and Farivar of NBC: Taken together, they show how Zuckerberg, along with his board and management team, found ways to tap Facebook users' data—including information about friends, relationships, and photos—as leverage over the companies it partnered with. In some cases, Facebook would reward partners by giving them preferential access to certain types of user data while denying the same access to rival companies. For example, Facebook gave Amazon special access to user data because it was spending money on Facebook advertising. In another case the messaging app MessageMe was cut off from access to data because it had grown too popular and could compete with Facebook.